H.B. No. 4900 aims to prohibit the investment of state funds in certain countries and private business entities associated with those countries, specifically targeting nations deemed as "countries of concern," which include China, Iran, North Korea, and Russia. The bill introduces new definitions and provisions in the Government Code, including the designation of a "country of concern" by the governor and the establishment of criteria for identifying "scrutinized companies." These companies are defined based on their business operations and affiliations with countries of concern, and the bill outlines the process for maintaining a list of such companies.

Additionally, the bill includes provisions that prevent investing entities from acquiring securities or making deposits in banks located in countries of concern. It mandates that companies identified as scrutinized must be notified of their status and given an opportunity to change their organizational structure to avoid divestment. If they do not comply within a specified timeframe, investing entities are required to divest from these companies. The bill is set to take effect on September 1, 2025, and includes a requirement for the comptroller to update the list of scrutinized companies by January 1, 2026.

Statutes affected:
Introduced: Government Code 2270.0001, Government Code 2270.0002, Government Code 2270.0201 (Government Code 2270)